In 2024, the share of coal energy used in Bitcoin mining dropped significantly, while renewable energy sources continue to grow.
Transition to Cleaner Energy Sources
According to a new report by MiCA Crypto Alliance, the share of coal energy in Bitcoin mining dropped from 63% in 2011 to 20% in 2024, with an average annual decrease of 8%. Meanwhile, renewable energy's share has been increasing annually at an average rate of 5.8%, reflecting a significant shift towards cleaner and more sustainable energy solutions in Bitcoin mining.
Global Coal Consumption in 2024
Amidst Bitcoin mining's shift to renewable sources, global coal consumption reached a new high in 2024, estimated at 8.8 billion tonnes, according to the International Energy Agency. Demand for coal energy is expected to remain at record levels over the next few years, particularly in emerging economies like India, Indonesia, and Vietnam.
Bitcoin's Energy Path Scenarios to 2030
The report outlines five future scenarios for Bitcoin's carbon footprint, ranging from a bearish $10,000 BTC price to an ultra-bullish $1 million scenario. In a medium price scenario, renewable energy is estimated to comprise between 59.3% and 74.3% of Bitcoin's total electricity usage, depending on the policy scenario.
The report forecasts further decarbonization of Bitcoin mining and significant reduction of its environmental footprint by 2030, despite global coal consumption increases.
